Why are there poorly cut diamonds?

[bluedevil27]

Just a question I wanted to put out to the board: Why are there poorly cut diamonds?

If I am a cutter, why would I cut a diamond to poor proportions? Lets say I get a 2ct raw diamond. I create a 1ct excellent cut or a 1.25-1.50 poorer cut. Shouldn''t my 1ct excellent cut still sell for more than a higher weighted lesser cut? (if not, then i''ve answered my own question). So if cut is the biggest price differential, why would a cutter create poor cuts? I doubt cutters do it on purpose, but then if there were some cutters who are bad and other who are good, wouldn''t the cutters who are bad not be able to sell as much? Or is there a market for both well cut and not as well cut diamonds (educated vs. non-educated buyers). I would think with a purchase as big as a diamond, most people would want to be educated. I don''t see people buying cars or high cost electonics without doing any homework (i guess some people do).

Maybe i''m overthinking, but I can''t figure out why someone would take the potential for a beautifully cut diamond and just create a so-so cut diamond. I would think the return for the extra effort and expertise would be shown in the higher price.

Is the answer simple economics? There''s still a demand for not as well cut diamonds so there will always be a supply?

I''m probably rambling now, but I''d like to hear other people''s thoughts.

 

[choro72]

I have wondered that A LOT too...The only logical explanation I can come up with is that they want to make sure they market to those people who don''t know anything about quality, only weight. Maybe if they cut all the diamonds beautifully, then there won''t be enough big sized rocks to go around? I''m interested in opinions/facts as well!

 

[oldminer]

There are more size buyers on small budgets than shoppers for finely cut diamonds. Maybe this will slowly change, but fine stone shoppers are a very small minority of diamond shoppers today. There is a very unusual demographic to the Internet shopper, however.

Diamond rough may have inclusions which prevent cutting a fine make and allow a larger, but less well cut stone. If the stone gets sold fast, and if the cutter makes money, not one in the diamond business complains.

The complexity of why diamonds are each cut the one they are is highly individualized and mostly based on the clientele and demand of customers of each cutting firm. Cutters work to fill demand. Turnover speed is highly critical with an item that has a low profit margin per sale.

 

[ButterBean]

Date: 2/15/2008 3:20:47 PM
Author:bluedevil27
Just a question I wanted to put out to the board: Why are there poorly cut diamonds?

If I am a cutter, why would I cut a diamond to poor proportions? Lets say I get a 2ct raw diamond. I create a 1ct excellent cut or a 1.25-1.50 poorer cut. Shouldn''t my 1ct excellent cut still sell for more than a higher weighted lesser cut? (if not, then i''ve answered my own question). So if cut is the biggest price differential, why would a cutter create poor cuts? I doubt cutters do it on purpose, but then if there were some cutters who are bad and other who are good, wouldn''t the cutters who are bad not be able to sell as much? Or is there a market for both well cut and not as well cut diamonds (educated vs. non-educated buyers). I would think with a purchase as big as a diamond, most people would want to be educated. I don''t see people buying cars or high cost electonics without doing any homework (i guess some people do).

Maybe i''m overthinking, but I can''t figure out why someone would take the potential for a beautifully cut diamond and just create a so-so cut diamond. I would think the return for the extra effort and expertise would be shown in the higher price.

Is the answer simple economics? There''s still a demand for not as well cut diamonds so there will always be a supply?

I''m probably rambling now, but I''d like to hear other people''s thoughts.

I''m no expert, but I believe, while cut may be king, that SIZE is actually the biggest price differential.

 

[denverappraiser]

Date: 2/15/2008 3:20:47 PM
Author:bluedevil27

Is the answer simple economics?

Of course the answer is economics but economics is rarely simple.

The job of the cutter isn’t actually to maximize the beauty from a particular piece of rough, it’s to maximize money. The rough is however God made it but everything after that is done by man and is aimed at filling a particular need. Some shoppers will pay a premium for superb cutting while others prefer pay a premium for bigger sizes. Most will compromise somewhere in the middle. Similarly, not all rough is well suited for each type of end customer. Part of the process involves deciding which rough stones will go to the ‘premium’ type cutters and which are better suited for the discount folks. A top tier cutter will pay extra and shop harder to get exactly the right material to work with while others prefer to get a discount on the material that the ubercutters pass up. It’s not an either/or type decision. Both can be right in that they are approaching a different sort of problem.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver